VAT Information

The EU legislation relating to cross-border importation of goods is very complex and varies considerably between the member states. These complexities are compounded recently with Brexit being thrown into the landscape as well. As a starting point, understanding the various import terms will assist your business to navigate customs clearance and VAT compliance. Import Terms […]

Without the correct data and tax codes, a successful VAT return is impossible. Period. But so many companies across the globe are getting this wrong. Succesful VAT compliance comes down to data. And not just any data; digital data. To be compliant, your business can no longer rely on paper ledgers or manual bookkeeping. VAT […]

For many tax teams, the pursuit of VAT compliance is an ongoing and complex saga. VAT compliance is hard enough in one country. However, introduce the need for VAT compliance in multiple jurisdictions and then it’s easy to lose sight of what VAT compliance actually means for your business. This article deals with what VAT […]

The UK tax office, HMRC, introduced Phase 1 if their ‘Making Tax Digital’ (MTD) initiative in April 2019. The much more demanding Phase II implementation was supposed to come into effect in April 2020, but this was delayed owing to the noise surrounding Brexit and the Covid-19 pandemic. However, it was only delayed by a [...]

VAT is everywhere but it’s a complexity of small differences. This article gives simple solutions to the complex, expensive and confusing problem of global VAT,  In theory, VAT is simple. The principles are easy enough to understand. There is broad agreement on how to regulate and collect VAT. If you know how VAT works in […]

Deciding on your pricing is difficult enough in regular business scenarios – making sure your product or service is correctly priced can be the difference between profit and loss. This issue is intensified when you are selling online to customers in various jurisdictions and have VAT or similar indirect tax obligations to consider: not only [...]

The UK has introduced new regulations making Online Marketplaces (OMP) liable for VAT payments and reporting in certain situations. According to the new rules, which take effect from 1 January 2021, OMPs will be liable for VAT payments on the sale of the following goods sold through the OMP: Goods delivered from inventory stored outside [...]

More states are working to enhance VAT collection on e-commerce and digital services. That’s according to the OECD’s Consumption Tax Trends 2020 report. The report  notes that several countries - both inside and outside the OECD - are adopting the organisation’s guidelines on digital VAT. Businesses should therefore anticipate changes to digital VAT regulations, and [...]

Canada is to tax cross-border digital services, effective from July 2021. Consequently, non-resident businesses providing digital services to customers in Canada will have to start charging sales tax. Many digital vendors will now have to register  for GST/HST in Canada.  Up to now, only digital services businesses with local operations have had to charge customers [...]

For many companies, finding ways to increase import VAT savings can feel overwhelming and difficult to implement. You wouldn’t be incorrect in thinking. It is complex to unlock Import VAT savings while ensuring 100% VAT compliance.  In short, optimising operations is about more than meeting minimal VAT compliance obligations. Ultimately, it’s about leveraging VAT regulations [...]